Fitch affirms Electricidad de Caracas

Fitch Ratings said it affirmed CA La Electricidad de Caracas' foreign-currency issuer default rating at B+, local-currency issuer default rating at B+, $13.2 million outstanding senior notes due 2014 at B+ with recovery rating of RR4, $650 million outstanding senior notes due 2018 at B+ with recovery rating of RR4, long-term national scale rating at AAA(ven) and short-term national scale rating at F1+(ven).

The outlook is stable.

The ratings reflect the company's strong credit linkage with its majority shareholder, Petroleos de Venezuela SA, as well as with the Bolivarian Republic of Venezuela, its ultimate shareholder, Fitch said.

The agency said it expects the company's credit metrics to continue to deteriorate sharply due to the lack of tariff increases since 2006, the recent devaluation of the local currency and high inflation levels.

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